A paper recycling system having a dry defibrating unit that shreds and defibrates paper, a first conveyance unit that conveys the defibrated material defibrated by the dry defibrating unit, an air classifier that classifies and deinks the defibrated material conveyed by the first conveyance unit, a second conveyance unit that conveys the defibrated material de-inked by the classifier, and a paper-forming unit that forms paper from the defibrated material conveyed by the second conveyance unit is known from the literature (see, for example, PTL 1).